August 11, 2017
Understanding the basics of payroll
For any startup directors, your employees are crucial in getting your company to take off. They are the guys that ensure everything runs as smoothly as possible. You’ve got a duty to your employees too though, as an employer you need to understand your responsibilities and legal requirements to ensure that they are being paid. Whether that is weekly or monthly.
This is referred to as payroll, there are really specific rules and requirements you need to follow when it comes to payroll.
For those new to all this, here’s a couple of basic points to help you understand payroll
— Payroll is the money paid by a company to employees.
— It’s a legal requirement to pay out whatever salary you agree however you will without some for tax and national insurance payments. This is called PAYE.
— It is crucial you report and pay the right agencies at the right time and you have to record all details.
— Every time you pay an employee Real time legislation means you are required to submit PAYE to HMRC.
— It is possible to complete payslips and calculate PAYE manually however returns must be sent automatically and that’s why an online system can come in handy.
— As part of payroll, you are required to deal with national insurance, student loans, sick pay, maternity leave and other things so it might be wise to see additional help however it is not impossible to do all this in-house with the assistance of special software. It’s a lengthy process, something young startups might not have time for.
— The whole process can be difficult and time-consuming which is why most small businesses outsource it. By outsourcing, all legal requirements are taking care of and the process is smooth and stress-free. Consider checking out Tax Kings
for help with payroll.
You should make sure your employees are always paid on time and the proper amount unless you want legal problems and low staff morale.